The New Zealand dollar rose to around $0.593, moving further away from multi-week lows, as the US dollar continued to struggle amid higher prospects of interest rate cuts by the Federal Reserve. Mounting concerns about the US economy - particularly signs of a cooling labor market - have bolstered bets on a September rate cut. However, the kiwi's gains may be limited by a weaker-than-expected local jobs report. While New Zealand’s unemployment rate ticked up to a near five-year high of 5.2% in Q2, it was still a little below forecasts of 5.3%. This reinforced expectations that the Reserve Bank of New Zealand could cut rates at its later this month. Markets now price in a 90% chance of a 25bps cut, with the potential for further easing to a floor of 2.75% later this year or early next. Adding to concerns, the Trump administration imposed a 15% tariff on New Zealand exports, effective August 7, potentially placing further strain on the country's export-driven economy.